Markets
Bitcoin’s volume share during market hours in the United States rises to record levels
(Bloomberg) — The share of Bitcoin trades that occur during U.S. market hours has reached an all-time high, accounting for 46% of this year’s cumulative volume through April, according to a cryptocurrency research firm.
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Research suggests that the higher share of trading may be linked to the January launch of spot-Bitcoin Exchange Traded Funds, as volume increased towards the start and close of US trading hours, according to Kaiko Research. ETFs calculate their net asset values each weekday at the close of U.S. exchanges, which Kaiko says increases price discovery and arbitrage trading. Thursday was the day of the week with the highest share of trading during these hours, accounting for nearly 15% of cumulative daily volume, Kaiko found.
ETFs have attracted nearly $13 billion in net inflows since they launched four months ago, making them one of the most successful product categories in the industry’s history. Demand has slowed recently, with just $925 million net flowing into funds so far in May, according to data compiled by Bloomberg. Lately, the cryptocurrency market has been fixated on the prospect of U.S. regulators approving or rejecting ETFs that invest directly in Ether, the second-largest cryptocurrency. The Securities and Exchange Commission’s decision on at least one spot-Ether ETF application is expected by May 23.
Read more: Ether ETF hopes are revived amid flurry of application updates
While Bitcoin trading volume during US hours has largely returned to 2022 levels, volume during Asian trading hours remains significantly lower, Kaiko also found.
According to Toby Winterflood, chief product officer at CCData, Bitcoin’s performance during US market hours also shows that the cryptocurrency’s volatility is reduced compared to previous hours.
“This literally demonstrates the impact that these ETFs have had, not only on Bitcoin’s correlation with the S&P, but also on its potential decorrelation with other altcoins and other cryptocurrencies,” Winterflood said. “I don’t think we’ll necessarily see this change until potentially ETH, for example, is also approved as an ETF.”
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